Diamondback Energy (FANG) Stock Moves -1.94%: What You Should Know
Diamondback Energy (FANG) closed at $134.71 in the latest trading session, marking a -1.94% move from the prior day. This change was narrower than the S&P 500's daily loss of 4.32%. Elsewhere, the Dow lost 3.94%, while the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the energy exploration and production company had gained 7.38% over the past month. This has outpaced the Oils-Energy sector's gain of 2.43% and the S&P 500's loss of 3.75% in that time.
Wall Street will be looking for positivity from Diamondback Energy as it approaches its next earnings report date. On that day, Diamondback Energy is projected to report earnings of $7.01 per share, which would represent year-over-year growth of 138.44%. Our most recent consensus estimate is calling for quarterly revenue of $2.5 billion, up 30.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.26 per share and revenue of $9.91 billion. These totals would mark changes of +129.75% and +45.78%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. Diamondback Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 5.23. For comparison, its industry has an average Forward P/E of 5.37, which means Diamondback Energy is trading at a discount to the group.
It is also worth noting that FANG currently has a PEG ratio of 0.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.22 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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